Xylem Acquires Majority Stake in Idrica to Empower Water Utilities With Intelligent Solutions

Rhea-AI Summary

Xylem (NYSE: XYL) has acquired a majority stake in Idrica, a water data management and analytics leader. The partnership integrates Idrica's technology platform with Xylem's digital water solutions portfolio under Xylem Vue, offering utilities real-time insights to address water scarcity and aging infrastructure challenges.

The integration has already shown significant results: The City of Hot Springs, Arkansas reduced non-revenue water loss by nearly 50% using Xylem Vue's virtual district metering areas. In Monterrey, Mexico, SADM achieved overall water savings of 17% (up to 37% in key pipeline sections) by implementing smart monitoring and management of water pressure, flow, and consumption through the platform.

Positive

• Successful implementation cases show significant efficiency improvements (50% water loss reduction in Hot Springs, 17-37% water savings in Monterrey)
• Strategic acquisition strengthens Xylem's digital solutions portfolio
• Integration creates enhanced platform for water utilities management

Negative

• None.

Insights

Financial Analyst

This strategic acquisition strengthens Xylem's position in the digital water solutions market. The deal brings immediate value through Idrica's proven technology platform and established market presence. The demonstrated success cases show significant ROI potential - Hot Springs achieving 50% reduction in water loss and Monterrey's 17% water savings showcase the commercial viability. This acquisition aligns with the growing trend of digital transformation in utilities, addressing the $1.7 trillion global water infrastructure market. For investors, this represents Xylem's commitment to high-margin software solutions and recurring revenue streams, which typically command higher valuations than traditional hardware businesses. The deal should positively impact Xylem's long-term growth trajectory and margin expansion potential.

Tech Expert

The integration of Idrica's technology with Xylem Vue creates a comprehensive digital water management platform that addresses critical infrastructure challenges. The solution's ability to create virtual district metering areas and implement smart monitoring systems represents advanced IoT and analytics capabilities. The platform's real-time insights and anomaly detection features demonstrate sophisticated AI implementation in water management. This technology stack enables predictive maintenance and operational optimization, important for modernizing aging water infrastructure. The successful deployments in Hot Springs and Monterrey validate the scalability and effectiveness of the solution across different market sizes and conditions.

Companies will further integrate solutions that help utilities accelerate digitalization and tackle critical challenges such as water scarcity and aging infrastructure

WASHINGTON, D.C.--(BUSINESS WIRE)-- Global water solutions company Xylem (NYSE: XYL) today announced that it has acquired a majority stake in Idrica, a leader in water data management and analytics, to empower water utilities with intelligent solutions for their most critical challenges.

Xylem Vue, which combines Xylem’s existing digital water solutions portfolio with Idrica’s technology platform, empowers customers to address critical challenges such as water scarcity and aging infrastructure with real-time insights. Today’s move will enable the two companies to further integrate their solutions and create a simpler, more powerful customer experience.

“Deepening our partnership with Idrica is a critical piece of our strategy to deliver intelligent solutions to our customers,” said Matthew Pine, CEO of Xylem. “Together, we can help them see deeper into their networks and use insights to solve long-standing problems like water loss more effectively and affordably than ever before.”

According to Jaime Barba, CEO of Idrica and head of Xylem Vue, “Every day, water utilities are challenged by complex systems that make it difficult to use data to make decisions. Our deeper partnership will further enable water and wastewater utilities to connect and manage their digital assets and streamline operations in a simple, secure and holistic view.”

Over the past year and a half, water utilities worldwide have deployed the Xylem Vue integrated software and analytics platform to optimize their infrastructure, lower costs, and adapt to new conditions.

For example, the City of Hot Springs, Arkansas, improved its operations by adding virtual district metering areas using Xylem Vue. The integrated software and analytics platform enabled the city to pinpoint high water loss areas by creating smaller, more manageable zones within the network. By deploying these advanced digital solutions, Hot Springs reduced non-revenue water loss by nearly 50%.

Another example is the city of Monterrey, Mexico. Servicios de Agua y Drenaje de Monterrey, I.P.D. (SADM), which serves a metropolitan area of 5.3 million people, sought a digital solution to monitor severe drought conditions and enhance efficiency.

Xylem Vue enabled SADM to implement smart monitoring and management of water pressure, flow and consumption. The platform also helps the utility identify potential anomalies that point to visible and hidden leaks. As a result, SADM has realized overall water savings of 17% – and up to 37% in certain key sections of pipeline – significantly increasing its operational efficiency and management.

About Xylem

Xylem (XYL) is a Fortune 500 global water solutions company that empowers customers and communities to build a more water-secure world. Our 23,000 diverse employees delivered combined pro forma revenue of $8.1 billion in 2023, optimizing water and resource management with innovation and expertise. Join us at www.xylem.com and Let’s Solve Water.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241210980286/en/

Steve Bauer

+1 (667) 453-1271

Steve.Bauer@xylem.com

Source: Xylem Inc.

FAQ

What is the purpose of Xylem's acquisition of Idrica?

Xylem acquired Idrica to enhance its intelligent water solutions portfolio, integrating Idrica's technology platform with Xylem Vue to help utilities address challenges like water scarcity and aging infrastructure with real-time insights.

What results has Xylem Vue achieved in Hot Springs, Arkansas?

Using Xylem Vue's virtual district metering areas, the City of Hot Springs reduced non-revenue water loss by nearly 50% by creating smaller, more manageable zones within the network.

How has Xylem Vue improved water management in Monterrey, Mexico?

Xylem Vue helped SADM in Monterrey achieve overall water savings of 17% (up to 37% in key sections) through smart monitoring and management of water pressure, flow, and consumption, while also helping identify potential leaks.